Czech Finance Minister Zinnik Stangura raised his concern about the suggestion of the central bank ruler to explore the possibility of investing some foreign currency reserves in the country in Bitcoin.
While recognizing the independence of the Czech National Bank and the government’s inability to interfere in its decisions, Stangura expressed concerns about this Bitcoin High fluctuations can make it an inappropriate asset for backup property.
The Czech National Bank is considered a bitcoin investment as part of the reserve diversification strategy
The comments of the Czech Finance Minister of Finance, Alice Michael’s proposal to consider investing billions of euros from the Central Bank reserves in the encrypted currency.
Governor Alice Michael said on Wednesday that if it is approved, the Czech National Bank may eventually keep up to 5 % of the 140 billion euros (146 billion dollars) in Bitcoin.
Since the seizure of the Czech National Bank in 2022, Michl has focused on diversifying the reserves of the large institution by slowly building golden property and investing a more important part of the portfolio in stocks that could make fixed profits in the long run.
If Bitcoin is implemented in its reserves, this may be the first shift to the coded currency by the Western Central Bank.
Later, in a post on X, Michael He made it clear that no immediate decision was imminent, while emphasizing that the central bank would first assess the advantages of the proposal and feasibility. He referred to:
The goal of the Czech National Bank is to stabilize prices. When we took office in July 2022, inflation was 17.5 %. We brought it to the goal. We also diversify reserves – increase gold property from 0 % to about 5 % and plan for 30 % in stocks.
~ Alex michl
The ruler of the Czech National Bank said that BTC has nothing to do with bonds, but it is still interesting to include them in the preservative at the present time. He also emphasized that the discussion is still in the early stages.
The Czech central bank plans
As for Bitcoin fluctuations, Michl said that this is the main reason that it is difficult to use digital assets as a backup asset despite the benefit of diversification. He pointed out that the Central Bank team will inform on Thursday to conduct a more detailed analysis of the BTC capabilities in the reserves, stressing that this is the first step.
Swiss currency advocates recently launched an initiative to make the Swiss National Bank (SNB) carrying BTC and Gold in its reserves. SNB has expressed doubts about Bitcoin as a reserve.
Policymakers at the European Central Bank have continued to continue Bitcoin currencies as a possible reserve asset, and they often compare it to lily mania in the Netherlands in the seventeenth century.
Also, last week in the Davos Committee, the central bank ruler in South Africa rushed to the idea of BTC stock, on the pretext that the coding compression group should not be allowed to dictate the assets owned by governments.
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